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Tight oil vs deepwater: the fiscal dimension
Report summary
Once government and mineral owner terms are applied, does tight oil or deepwater investment stand out as the better choice? How do land acquisition costs compare? Where and how do investors achieve better fiscal terms? And how do project risks affect the investment comparison? This analysis compares tight oil and deepwater investments on a full cycle basis and explores the impact of bonus payments, royalty and tax terms on risked economics.
Table of contents
- Executive summary
- What fiscal terms apply?
- Land acquisition costs: tight oil vs deepwater
- Land acquisition costs: resource risk
- Fiscal impact comparison: hypothetical project economics
- Fiscal impact comparison: tight oil and deepwater resources
- How do returns compare if we invest the same amount in tight oil and deepwater?
- How do the returns compare once we add risk?
- Deepwater versus tight oil: which is better?
Tables and charts
This report includes 9 images and tables including:
- Figure 1: Life cycle of fiscal terms
- Figure 2: Signature bonuses paid to acquire leases and licences
- Figure 3: Recent bonuses paid for US government leases
- Figure 4: Acquisition costs for tight oil and deepwater resources
- Figure 5: Impact of fiscal terms on tight oil and deepwater
- Figure 6: Impact of fiscal terms on asset values
- Figure 7: Comparison of US$1 billion investment in tight oil and deepwater
- Figure 8: Deepwater EMV calculation
- Figure 9: Expected monetary value (EMV) comparison
What's included
This report contains:
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